Gaurav Munjal, cofounder and CEO of edtech startup Unacademy, has refuted reports suggesting the company is exploring a sale or merger.
Munjal took to LinkedIn on December 7 to address the speculation, branding the rumors as baseless and reiterating Unacademy’s focus on long-term growth.
“We are building Unacademy for the long run. We are not doing any Sale or M&A. Ignore the Rumours.” wrote Munjal.
He expressed confidence in the company’s trajectory, forecasting significant growth for 2024, particularly in its offline business and unit economics.
Company Performance and Growth in 2023
Munjal highlighted several milestones achieved by Unacademy in 2023:
- Unacademy Centres’ Business grew by 30% with significant improvement in Unit Economics
- Unacademy reduced cash burn at the group level by 50% this year and now boasts a healthy cash reserve of $170 million, with no debt and a financial runway of over four years.
- Its SaaS platform, Graphy, achieved 40% growth, while the recently launched language learning product Airlearn surpassed $400,000 in annual recurring revenue in the US within four months.
While Unacademy’s online test preparation business saw a slight decline, Munjal noted a significant improvement in unit economics within that vertical.
Challenges and Workforce Changes
The edtech giant faced challenges over the past year, including a 40% year-on-year decline in net loss, which still stood at INR 1,678.1 crore for FY23. Its operating revenue, however, grew 26% year-on-year to INR 907 crore.
The company also underwent restructuring to streamline operations, resulting in the layoff of 250 employees earlier this year.
Additionally, cofounder Hemesh Singh transitioned from his executive role to an advisory position in mid-2024.
Rumored Deals and Market Speculation
Reports earlier this week suggested that Unacademy was in advanced talks to sell to Allen Career Institute for $800 million. Munjal’s statement dismissed these claims outright.
Previously, Unacademy was also linked to a potential merger with K-12 Techno Services, but discussions reportedly fell apart due to concerns over unit economics.
Unacademy’s Expanding Ecosystem
Founded in 2015 by Munjal, Hemesh Singh, and Roman Saini, Unacademy began as an online test preparation platform and has since diversified into offline learning and various verticals, including:
- Relevel: A platform for job assessment tests.
- NextLevel: A gamified job search platform.
- Graphy: A SaaS tool for course creation and management.
As Unacademy positions itself for a strong 2024, Munjal’s message underscores the company’s commitment to profitability and innovation, dispelling speculation of potential acquisitions and emphasizing its focus on sustainable growth.
